The cost-to-serve concept is used to quantify activities and costs in the supply chain needed to meet customer demand for products. By modeling all logistics activities in the network and properly allocating fixed and variable costs, an analyst can gain understanding of the actual cost of supplying a specific customer.
Optilon offers methods and technologies that can take into account fixed costs for sites, processes, process, personnel, equipment and transportation availability. Our technologies can also describe variable costs throughout the supply chain.
Example questions for cost-to-serve modeling include:
Learn more about our offerings in Supply Chain Design.